FIRST Act

I 116TH CONGRESS 2D SESSION H. R. 6884 To clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses. IN THE HOUSE OF REPRESENTATIVES MAY 15, 2020 Mr. NEWHOUSE introduced the following bill; which was referred to the Committee on Ways and Means A BILL To clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not af- fect the tax treatment of ordinary business expenses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Fixing the Income 4 Ramifications for Small Businesses and Tax Relief Act’’ 5 or the ‘‘FIRST Act’’. 6 VerDate Sep 11 2014 21:20 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6884.IH H6884 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 6884 IH SEC. 2. CLARIFICATION OF TREATMENT OF BUSINESS EX- 1 PENSES. 2 (a) IN GENERAL.—Subsection (i) of section 1106 of 3 the CARES Act (Public Law 116–136) is amended— 4 (1) by striking ‘‘1986, any amount’’ and insert- 5 ing ‘‘1986— 6 ‘‘(1) any amount’’; 7 (2) by striking the period at the end and insert- 8 ing ‘‘, and’’; and 9 (3) by adding at the end the following new 10 paragraph: 11 ‘‘(2) no deduction shall be denied or reduced, 12 no tax attribute shall be reduced, and no basis in- 13 crease shall be denied, by reason of the exclusion 14 from gross income provided by paragraph (1).’’. 15 (b) EFFECTIVE DATE.—The amendments made by 16 this section shall apply as if included in the enactment 17 of section 1106 of the CARES Act (Public Law 116–136). 18 Æ VerDate Sep 11 2014 21:20 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H6884.IH H6884 pbinns on DSKJLVW7X2PROD with BILLS